fishing. the captain of the ship knows these waters well. tonight the only guy who knows precisely where the squid are, boats for miles around hover hoping for a squid. >> it's a traffic jam. >> exactly. i tried to move the boat forward ien cot. it's awesome. >> 2013 is shaping up to be the year of the squid. a giant squid was seen for the first time in its natural habit habitat. 2,000 feet down off the coast of japan. squid isn't just for breading and deep frying any more. in popular culture, the squid agenda is alive and well and bent on world domination. did you see galaxar in "monsters versus aliens"? >> galaxar out. >> all hail galaxar, viva la

squid. >> i'm drew griffin at the cnn world headquarters in atlanta, thank you for joining me tonight. don lemon will return next weekend. have a great night and a great week. barack obama is entering his second term, only the third democratic president to be re-elected in the last 75 years. he faces deep domestic challenges. above all, a still weak economy. he faces a world in flux and in crisis from iran and syria to north korea and china. perhaps most visibly, he faces a domestic political deadlock that seems to overshadow all else. with this hand what can he do? what will he do? i've asked for advice from the states men and women who have stood beside presidents as they

have made their most difficult decisions, from republicans like james baker -- >> we didn't have a dollar, a de facto reserve currency in the world, we would be greece. >> robert rubin. >> in a democracy you can only move forward if both sides are willing to come together to govern. >> and independents like michael bloomberg. >> when you have jobs that we need to get done but americans won't take, letting the crops rot or letting the farms move south of the border is just insanity. >> at the end i'll write my own memo to the president. let's get started. while most of the world was ringing in the new year with revelrie, the united states congress rang it in with anger, strife and confusion. the angry battle over the fiscal cliff was emblematic of one of

the crisis facing this nation. politics is so divided, so bitter, that even kicking the can down the road is almost impossible to get agreement on. what to do? ronald reagan faced a majority in the house of representatives and he still got legislation passed including a major tax reform bill. james baker was treasury secretary at the time. >> i think the only time it's ever been done, at least in 100 years, and we did it with democratic votes. with ronald reagan as president. we did it with democratic votes. danny rostenkowski, was not going to come up with a bill that was not prodemocrat. the question was whether we were going to sign on to that bill, pass it in the house and try to fix it in the republican senate? our republican house members came to us and said, if you try to do that, we're going to roll

you. dick cheney, trent lott, they all came down to my office, they said, if you go forward with this rostenkowski bill, we're going to roll you. and they rolled us on the rule. they defeated us on the rule. i went over to the white house and said mr. president, you have to come out in favor of the rostenkowski bill. guess what, after a while, he did it. he did it. we did it, and that's how we got there. it was successful and shaded a period of extraordinary economic growth. >> but you're describing a situation where you had to do a lot of compromising. you stood up to house republicans. you supported a democratic bill. it's difficult to imagine in today's partisan climate. >> i think president obama could do that.

president obama wants a legacy. he deserves one. he's not going to have a legacy if he can't fix our economy. >> kay bailey hutchison is the recently retired senior senator from texas. >> had is his time to step out from his base and away from the fringes on both ends and say here is what our country needs right now. >> ken dubersteen, chief of staff in ronald reagan's second term thinks that point about stepping out from your base is even more important since obama's re-election. >> the second term is the art of governing, not the art of campaigning. they're very different skill sets. and the art of governing you have very much to almost make love to your opponents and so no to some of your fiercest

support supporters. and campaigning, it's the exact opposite. you have to figure out ways that you can accomplish things. realizing that time is an enemy. get as much done as you can, but don't over reach. >> what you're suggesting is that president obama needs to make love to the republicans and betray the democrats who have to elect him? >> i wouldn't use the word betray as much as i would say that sometimes it takes the ability to say yes to your opponents. and no to some of your fiercest supporters. >> a lot of people say president obama should be is monthsing a lot, he should be playing golf with john boehner, have republicans over. do you think that kind of thing produces real results? >> no, i think it's not just

atmospherics, if i'm negotiating with you, and i have in the back of my head i can trust what you tell me, we're much more likely to get to an agreement. >> president barack obama's car czar says that republicans in congress today are just unwilling to cooperate. >> the president may have spent more time in the first term reaching out to congressmen playing golf with them, having them to the white house, certainly couldn't hurt, couldn't make things worse, that's for sure. might have helped. at the same time, i think people who went to see the movie lincoln, and said, if we only had lincoln in the white house we could have passed any amendment we wanted. if we only had lbj in the white house, we would have the civil rights act again are kidding themselves, this is a different era. >> robert rubin was secretary of the treasury during another partisan time. >> how did you deal with republicans on the hill for something like the '97 budget

agreement, while they were trying to impeach president clinton. >> the partisan divide was bad. i think it's worse today. i think we have to do exactly what president obama said right after the election. >> i'm not whetted to every detail of my plan. i'm open to compromise. i'm open to new ideas. i'm committed to solving our fiscal challenges. but i refuse to accept any approach that isn't balanced. >> in a democracy, you can only move forward if both sides are willing to come together to govern, that's what we've been lacking. without it, i think we're going to be in terrible trouble. >> bill clinton's chief of staff says that presidents can make things happen, even without congressional support. >> the president has enormous power under the constitution and the laws of the united states. i'll give you an example, he has authority to change the mix of

energy in the country through the use of existing powers that he has under the statutes. particularly, the work that he could do through his epa to move the more dirty forms of polluting fuels to cleaner fuels. >> it might be hard to make it happen, but james baker's point holds, president obama will need to get some help from republicans if he wants to get things done. otherwise, it's just talk. if he could get 30 to 40 house republicans on his side, obama would have created a governing majority. something every successful president has had. next up, the economy. is there a silver bullet that will get it going? we'll tell you when we come back. [ female announcer ] need help keeping your digestive balance?

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fixing the american economy is the most urgent crisis president obama faces. despite the recovery, unemployment remains high. growth isn't where we would like it to be. and the national debt has grown

to historic proportions. the bill signed in the wake of the fiscal cliff crisis is a small fix. is there a larger one? once again, james baker. >> what would be your advice to president obama? >> my advice to president obama is, mr. president, whatever happens in the second term, you're going to bear the consequences of. our country is in sick shape financially. economically, we're really in bad shape. if we didn't have the dollar, the de facto reserve we would be greece. it's not going to be fixed without leadership from you. the republicans maintain control of the house. and we have divided government, he has to take the lead. he may score some short term victories over the republicans. in the meaning of long term, it's his enchilada. >> president clinton, secretary of the treasury, robert rubin.

>> when people look at what president obama should do. there are a number of people who say, well, he's got to get the fiscal house in order, he's got to deal with the deficit. why is that important? >> i think it's important to design a sound fiscal program that both contributes to job creation and recovery in the short term, i absolutely believe programs do that by creating confidence and creating fiscal room for a moderate stimulus. and also meets long term imperative for addressing what i believe is an unsustainable and dangerous fiscal trajectory. in order to put ourselves on a sound fiscal footing, we're going to have to have substantially more revenues and more revenues means higher taxes whether it's the tax rates or reduced deduction, one or the other, that clearly is going to be a cost absorbed by those who pay the taxes, there are going to have to be constraints on our

programs. that's what you have to do if you're going to get on a sound fiscal path, the longer you wait, the deeper your whole gets the harder it is to retain confidence. >> it's time to redue the country's convoluted tax system. the u.s. tax code is now 73,000 pages long. paul o'neill treasury secretary under george w. bush has an idea. >> you really want to scrap the entire u.s. tax code? >> yes. >> why? >> because it's inefficient, ineffective and fundamentally unfair. so i believe this. the revenue system should be used to raise money, shouldn't be organized to distribute benefits. >> no tax deductions? >> no deductions, no credits, no nothing. it's to raise revenue. and ideally, we should two it

with a progressive value added tax, that means -- >> that's a national sales tax, correct? >> well, it's not quite. progressive is important to me, i don't want people to pay taxes if they have $20,000 a year worth of income. but at 30,000, i might like for people to pay $1. just $1. so they have a legitimate claim for saying, i'm part of the society, and i don't pay a lot, but i do pay something. everybody participates, and there's no game playing, it's a very efficient way to raise revenue. right now, it costs us $431 billion a year to administer the tax system we have, and the tax gap, the money we're not collecting that's theoretically owed is $400 billion a year. we could do better than that, we can think better than that. and the president needs to lay that out for us. >> even if we get more growth, we're still finding it difficult

to get unemployment down. elaine cho served as george w. bush's secretary of labor. what would you do to create more jobs in america? >> i think you have to keep the tax rate low, they're a direct burden on the resources of the employer. the unemployment rate has dropped to 7.7%, but that's primarily because the labor participation rate has dropped to 63.6%, one of the lowest rates that we have seen in current years. what we're seeing actually is a lot of discouraged workers, people who can't find jobs and they're just giving up and they're no longer working and they're not counted in the workforce any more. we have to do better on the job creation side, it's the private sector who does the bulk of the high hiring, and they have to have the confidence. and that comes from a more reasonable taxation level, and the fiscal discipline that we need in our country to restore our country's overall financial

ratings. >> democrats say what's most important is a stable predict an set of rules, whatever the levels of taxation. steven radnor helped general motors get back into the black as president obama's car czar. >> one of the things people say that president obama needs to do is to create a sense of confidence among the business community which will drive investment, which will drive jobs. how does he do that? >> i think the president is off to a much better start, i think we need to have a set of policies in place which does involve congress that are long term. we knead to have long term tax policy, budget policy. not doing this a few months at a time. not careening from a debt ceiling to a fiscal cliff and tax credits that expire every few months. somehow the government as a whole has to come together to give business the confidence it needs. >> the single most important cost that we need to get under

control is health care. which now takes up 17% of gdp and still rises much faster than inflation every year. peter orzag ran president obama's office of management and budget during the first term. he says obama care moves us away from a bad model, where doctors and hospitals have a financial incentive to sell you lots of services. >> getting health care costs down is fundamental to the long term fiscal health of the country. what does it need to do in the second term? >> we don't need to wait until 2020. the big gap that remains is medical malpractice reform. what i would favor is finding a safe harbor to a doctor, if you can show you're following an evidence based protocol, i shouldn't be able to sue you. >> tax and health care reform would have huge benefits.

but getting them done will be hard. coming up next, is there an easy win for the president and the country? actually, yes. immigration reform. stay with us. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. [ male announcer ] save on ground shipping ♪ ♪ hi dad.

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i'm fareed zakaria, welcome back to memo to the president. on the domestic front in addition to the economy, president obama faces many pressing issues that will demand attention in his second term. one seems right for a solution. immigration reform. james baker, ronald reagan's chief of staff explains why. >> nothing concentrates the mind like being out of power for four years, okay? i think that republican attitudes are going to change. hopefully they'll change in the aftermath of this most recent electoral defeat. everybody knows that the hispanic vote was very important to what happened. >> bill clinton's chief of staff agrees. a grand bargain on immigration is now possible. >> immigration i think we've seen just the sea changes as a result of the election. that really is because of the

collapse of the latino vote for republicans. we saw it drop from 44 pshs from president bush in 2004 to 22% for governor romney. that's the fastest growing part of the voting population. and so i think the republicans know they have gotten themselves into a dark place. and they need to come out of that place. and they need to deal with the people who are here, who are contributing to our society. get them legal -- get them on a path to citizenship. >> first of all, we need to beef up our border security. republicans like that, you need some sort of a photo i.d., social security card with biometric identification. item number three whob a guest worker program p.m. and the fourth item ought to be registering the 12 to 20 million illegal aliens who are here in the country today and giving them the right to travel and to work temporarily, provided they

are not criminals, they pay their back taxes and they pay a small penalty for having broken the law in the first place. >> let me push you on that. if you don't provide a path to citizenship -- >> i don't think you can say -- that part of my four-point program is going to be attacked by amnesty by everybody -- by many people over on the republican side. but it's not amnesty. >> if they don't become citizens, what -- >> they have a path to citizenship. they do the way every other immigrant does to become an american citizen. >> what would you say to the republicans who would say, these guys should be deported. >> i understand that, and think what you say to them, look at what your position got us in this last election. we need to pay attention to demographics, okay? i said we need to be the party of hope and opportunity not the party of anger and resentment.

>> illegal immigration is just one problem with our current system. the mayor of new york city and one of america's most successful businessmen. >> bloomberg believes that the current legal system is also hurting our international competitiveness. >> we let in lots of people from all over the world to study at american universities. >> yes. >> particularly in science and engineering? >> yes. >> and then we throw them out. how would you fix the visa system? >> you attach a green card to the diploma for any graduate student that gets a masters or a ph.d. in any of the stem areas, science and technology. then you have more h 1 b visas, companies can use those to get people here. then you have to, if somebody is willing to start a business and can get financing, you certainly want to give them a visa, because they will go and start businesses for americans, and lastly, when you have jobs that

we need to get done but americans won't take like working in the fields, letting the crops rot or letting the farms move south of the border is just insanity, we need to get people in here. >> i here by declare -- >> that's a sensible solution that might actually happen. there's also a sensible plan that seems a longshot. both parties see the problem. our nation's roads and power lines, bridges and water pipes are literally falling apart. the problem is, nobody wants to do anything about it. >> good morning, everyone. >> ed rendell has a new book out, he says the solution is simple. >> as governor, i inherited a state that had the highest number of structurally deficient bridges in the nation. i borrowed a lot of money, put it into bridge repair, the stimulus helped us mightily,

that was one of the reasons that pennsylvania had the lowest unemployment rate of any industrial state in the union. there was something called build america bonds. the federal government said to the states, if you want to do major development and major construction projects, we will help you defray 35% of the interest payments, but it ran out when stimulus ran out, in an effort to reauthorize that as a separate program was turned down. the beauty of it is, very little impact on federal treasury, incredible impact on the amount of projects we can get going. this isn't rocket science, it's not like finding a disease to cure alzheimer's, parkinsons or cancer. we know what the answers are, we know what the cure to the problem,and all it takes is political courage. >> kay bailey hutchison is the recently retired senior senator from texas. >> i would ask the president to submit an infrastructure bank, and it would leverage your public money with private money. about a 50/50 split.

and it would have a revenue stream so you would be assured the government would be paid back, and bring that money that is sitting on the sidelines into making a real effort to build highways, bridges, electricity grids, all kinds of infrastructure needs that are not being met now that could be done with lower amounts of taxpayer dollars and that would end up being a revolving fund. >> in fact, the president has submitted just such a plan. but congress doesn't want to bank the broths based on merit. much as they protest publicly, congressmen and women actually like pork. next up foreign policy. should we bomb iran? intervene in syria? quarrel with china? stay tuned. with any qualifying $75 ink purchase.

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the middle east is in turmoil, israelis and palestinians bear fresh wounds from the recent conflict in gaza. iran continues to play games with the world regarding its nuclear ambitions. and the arab spring continues to reverberate. in some good ways, for sure, but

also in some troubling ways. and the civil war in syria becomes a bigger humanitarian crisis by the day. that's a lot of problems in just one region. here to give us his stake is jimmy carters national security adviser. what should president obama do with syria, as it continues its slow motion drift into chaos? >> i don't know, and i'm not being evasive. i literally don't know. we have to have better intelligence. who's really fighting? who started the fight. how was it financed. where did the initial weaponry for the beginning of that struggle a year ago or so originate? there doesn't seem to be any clarity on it, second, what are the objectives of those who are doing the fighting? for example, the suicide bombing in damascus, is that the work of

the more democratic groups that we would like to see in charge? doesn't that smack of certain forms of extremist terror that's associated with extremist groups? >> would you intervene militarily? >> well, i would intervene militarily, if i knew that something has to be desperately prevented. or if i knew that the effort would not produce a regional war and would produce a desirable political outcome. at this stage, i don't see much evidence for a yes as the answer to either proposition. >> james baker served as secretary of state for george bush, sr. >> the president is going to face unexpected challenges, but there's one challenge we know he's going to face. which is what to do about iran. how would you advice him to deal with it in the second term? >> in my view, we cannot let iran become a nuclear power. not because of the threat to israel or the threat to the united states or the threat to our modern arab allies in the

gulf, but because of the proliferation effect of that. everybody in the region will want their own weapon and they'll have the means to get it. >> you know what a decision like that would do to the presidency. if there were major military action and iran is a big country. many times larger than iraq. it could derail almost all the other issues. >> when i say do what you have to do, it doesn't necessarily mean you're going to put boots on the ground in ireyiran which think would be a big mistake. i'm talking about eliminating their program through surgical strikes and that sort of thing. we have technologies now that the israelis don't have that could be effective to do that. >> he sees the dangers regarding iran quite differently. >> get off the argument, old options are on the table. what does that mean? we're going to commit suicide as one of those options?

start a war? that doesn't make any sense to me as a matter of national policy, and i don't think the country would support it. i don't buy the irrational argument that the iranians are so suicidal, the country of 75 million people or 80 million people are going to rush into committing suicide the moment it gets the first prototype of its bomb. now, that even ignores the scientific fact that bombs have to be tested. you have to have a number of them to be credible, et cetera, et cetera. we're not dealing with an imminent threat, a reaction to which should be decided by someone else drawing red lines for us pp. >> a red line should be drawn right here. >> what do you think going-forward the president's strategy on iran should be? >> i think a war and the region will be a total disaster for the region, which will be set aflame, it would make our

withdraw from afghanistan much more difficult. the war would spread to iraq, to lebanon and to jordan, very predictably. the price of oil has skyrocketed. these are calamities for us, and we'll be stuck for another decade. i think that has to be avoids even if negotiations don't succeed. we have an incredible safeway of responding. namely, to make it absolutely clear that any slthreat from th derived from their acquisition of nuclear capability will be viewed by the united states as an assault on the united states if it is directed by our friends in the middle east and in particular israel. i think that would contain and deter the iranians. >> how would you handle israel with regard to the iran issue. >> i would tell israel the same

thing that the obama administration has already told israel. it's not in your interest to bomb nuclear facilities. it's not in our national interest. you let us take care of that. we have the potential to stop it, have you the potential only to delay it. and the consequences of your doing it are right now incomprehensible. they could be very, very dire. >> do you believe that it's important that in president obama's second term, he try to make a renewed effort on the middle east peace process? even though, let's face it, so far, what he's done has been unsuccessful? >> i'll tell you why i think so. i think if we don't move and do what is necessary, the arab masses will become more radicalized, more religiously driven and more jihadist, vis-a-vis israel, and i don't think israel can survive in the long run in that context. >> handling iran will be a

delicate balance between toughness and restraint. unlike other foreign policy crisis, the clock is ticking. we know that president obama will have to deal with this one and probably this year. from the most urgent foreign policy issue to the most important, the relationship between the united states and china. how to prevent a new cold war when we come back. if there was a pill to help protect your eye health as you age... would you take it? well, there is. [ male announcer ] it's called ocuvite. a vitamin totally dedicated to your eyes, from the eye care experts at bausch + lomb. as you age, eyes can lose vital nutrients. ocuvite helps replenish key eye nutrients. ocuvite has a unique formula not found in your multivitamin

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let's get you caught up on the headlines. people calling for tighter gun control. this is the week the two sides buttheads again. the president and his task force

send recommendations to the president. the head of the nra is ready to fight. >> the likelihood is, they're not going to be able to get an assault weapons ban through this congress. >> an attempt to rescue a frerj intelligence agent held hostage by militants in somalia. president obama detailed u.s. involvement in that mission. they made american aircraft available if needed. the mission failed. the captured agent was not rescued, the french government believes he is now dead. hugh jackman has won the golden globe for best actor in a musical or comedy, for his performance in les mis. he jackman revealed he almost gayive up on the role because he got nervous in the rehearsals. ben affleck won best director for argo a movie based on a true story about a daring rescue during the iran hostage crisis. those are the headlines this

hour, i'm drew griffin, keeping you informed, cnn, the most trusted name in news. the most important relationship in the world right now is the one between the united states and china. the world's number one and number two economies. successful management of this relationship will be one of president obama's most important tasks over the next four years, it's a mission fraught with potential pitfalls as the two pow powers compete economically, and militarily as well. a little over a year ago, president obama signalled a pivot to asia. >> we are here to stay. >> how is it working?

jimmy carter's national security adviser help ed broaden the relationship with china. you say it's a challenge and opportunity the shift of power to asia? >> that's correct. i think our policy historically has been europe focused. today the center of political gravity has shifted from europe to asia. in the sense that both are now important. we ought to think of our role in asia. not in the fashion that because of two world wars we were compelled to think of it in europe, but more in the fashion that is similar to british rule in europe in the 19th century. britain was not a protagonist but a balancer in europe. i think that's the model for us in asia. we should avoid getting involved in mainland contests.

for example, when they offered us a use of cameron bay, we're not acting on the charity, they're obviously trying to get us to cam ranh bay so our navy would be in an assertive political support for them against the chinese. >> the danger is involvement, which is not of deceasive importance. >> i think what is important to us we be a balancer so we discourage dramatic shifts or particular use of force. >> james baker served as secretary of state under george bush, senior. >> there are a lot of countries in asia that are looking at china's rise with apprehension. they have asked the united states to get more involved, singapore, philippines, vietnam, japan, most importantly australia. how should we think about this pivot? >> we're wise to stay out of the disputes in the south china sea. see if we can get the parties to

resolve those disputes peacefully. if those disputes end up creating a pedestrifree navigat that's different, we would be impacted directly. we could ally with vietnam probably today, interestingly enough. our long-time opponent would be an ally of ours against china, but i'm not sure that's the way to go. we will have to closely monitor china's military buildup. we plan to do that as i understand it, that's important to do, we must keep a robust military presence in the pacific. we do that with the seventh fleet, they have every bit as big an interest in getting along with us as we do in getting along with them. and where our interests don't converge, where we have differences, we stand up for our views, and we stand up for our rights. >> when you look at u.s.

relations with china, do you think we should be doing anything different going-forward? >> i think we should certainly reassert publicly the importance of the relationship. we should avoid the kind of language that was used in our presidential campaign. and particularly by the party that lost. >> day one i will label china a currency manipulator, which will allow me as president to be able to put in place if necessary tariffs where i believe they are taking unfair advantage of our manufacturers. >> it sent a message to the chinese, to which they started to reciprocate in kind with alarm and anger, that's the kind of stuff we need to avoid. >> president clinton's treasury secretary says china is often used as a whipping post during presidential campaigns. >> one thing i think i can say with absolute assurance, and i

believe nothing is absolutely sure in life. if governor romney had been elected president he would not have declared china a currency manipulator on his first day. the presidential campaigns have a tendency to point at china. i think it is in our kmeks self-interest to have an effective relationship. a lot of what they complain about with respect to us, i think it would be in our interest to deal with. similarly, a lot of what we complain about with respect to them. their export driven strategy, i think it's critically important for their own self-interest if they're going to have sustainable growth going-forward to deal with that issue. we have a common self-interest in dealing with many of the issues that we complain to each other about. >> what should be the core elements of a u.s. china relationship going-forward. >> the core elements of the cooperative u.s. chinese partnership is in many respects

in the communication january 2011 by presidents obama and jintao of china. it sets a framework. a framework in which the word partnership is really given meaning, and framework for something unprecedented in the history of human affairs. namely, when two major powers arise, they almost never collide. for the first time in history, america and china have an opportunity to avoid that, be partners and do themselves well, in the present circumstances worldwide, if china and america collide. if america and china collide, both will suffer. >> so the lesson is, to be careful not to drift into a hostile relationship with china. when we return, i'll give you my own memo to the president.

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we've heard from senior states men and women on what president obama needs to do to have a successful second term. and a successful legacy. here are some of my own thoughts. most presidents get just a couple lines in history. >> we face our common difficulties. >> fdr revived the country after the great depression and won world war ii. >> this purpose is not to punish. >> lyndon johnson created the great society and escalated the war in vietnam. the first line of president obama's legacy has already been written he helped usher in universal health care in america. that is an historic achievement, but it remains to be seen whether it is the beginning of a path toward a more humane and sustainable health care system or one more step down a path of

fiscal ruin. having expanded access to health care in his first term, obama must now concentrate on bringing costs down, using some of the mechanisms within obama care, but expanding them and creating others. getting health care reform right will be more important to our fiscal future than any other set of policies. beyond this, obama has opportunities to make large moves. he could and should tackle immigration because it does seem right for resolution. he might even be able to find common ground on reforming the tax code, something most americans agree needs to be reformed. but none of these efforts will rise to the level of that second line for obama's legacy. >> good afternoon, everybody. >> that will depend on the future of american growth. the president inherited an economy in free fall. he helped prevent a second great

depression. but he also inherited an economy that was fundamentally unbalanced. for over 20 years, economic growth in america has been slow. recoveries have been jobless, and median wages have declined. we need a new strategy for growth. >> based on reform and investment we need major reforms of regulations and tax policies to make america competitive and growth oriented. but we also desperately need new investments for the future. we need a world class infrastructure, not one that is now ranked 25th in the world according to the world economic forum. we need highly trained workers. we need to rebuild our great universities to be centers of access and excellence so that every american has a